In vertical analysis
A) a base amount is required.
B) a base amount is optional.
C) the same base is used across all financial statements analyzed.
D) the results of the horizontal analysis are necessary inputs for performing the analysis.

Question

Quizplus · Accepted Answer

In vertical analysis, a base amount is required as a reference point to which other items in the financial statement can be compared. This base amount is typically set as 100% or 1.00, and all other line items are expressed as a percentage of this base amount.

In Vertical Analysis